If a friend sells me a car for RM1 or below market value, will it attract attention from LHDN (Inland Revenue Board of Malaysia)?

I would like to ask, if a friend transfers the ownership of their car directly to me without any outstanding loans, what consequences might arise?

Example: A Mercedes worth RM180,000 at market value, and he has already fully paid for it. Let's assume I am taking over the installment payments ("sambung bayar") and have privately paid the full RM180,000.

If a friend directly transfers ownership to me through an agent, for example, using RM40,000 in cash, will LHDN be aware of the purchase price? Will the JPJ (Road Transport Department) transfer documentation include the sale price?

Assuming I privately negotiate a price with him, can he sell the car to me for RM1?

If LHDN does investigate and calls you in for questioning, how should you explain and what documents should you prepare?

I've seen cases in foreign countries where a car can be given as a gift, and a letter is written to prove that the car is a gift to the recipient. Does this concept hold in Malaysia?

Do you have any additional advice?

new Account, 1st post, name P.Assassin, Phantom Assassin a? do you kill n rob someone?

pretty ass asin kot. TS nak tolak kat ahli politik mana ni?

You receive this "gift" from someone for a favour

first of all bawak bertenang.

it all depends, if you have been doing taxes with no hanky panky, most likely no issue.

also, you buy it at RM1 or RM0.01 also IRB wont know cuz its private sale with no FI involved....

jpj/puspakom/ins/rtax all not related, it all has its own set rate. sendiri rajin baca sikit

Was it Lotus that was acquired for 1GBP ? Willing buyer willing seller. Apa mahu lagi ?

This post has been edited by Roman Catholic: Dec 19 2023, 05:06 PM

"I rented the car for years, and get exclusive right to buy off when I'm ready."

sounds familiar?

In the matter of interest, you WILL NOT get into trouble UNLESS you and your friend got into conflict of interest situation.

No business award/supplier/insider trading or whatsoever in public or private sector.

This one need to consult Najib gor